How to Register a Business in the United Kingdom: A Guide for Coaches, Consultants and Digital Course Creators
- Vena Verga-Danemar
- Dec 8, 2024
- 3 min read
Updated: Feb 25
Starting a business in the UK as a coach, consultant, or course creator can be incredibly rewarding. The UK offers a transparent legal system, a robust digital infrastructure, and ample support for entrepreneurs. However, understanding the legalities—like when to register, VAT thresholds, and specific rules for digital products—is essential to avoid unnecessary penalties and run your business confidently.
Here’s your step-by-step guide to registering as a sole trader or a limited liability company in the UK, with tips tailored to your business needs.
Ease of Doing Business in the UK for Coaches, Consultants, and Course Creators
The UK makes it relatively easy to start a business. The registration processes are straightforward, and the government provides plenty of resources for entrepreneurs. For service-based businesses like coaching or consulting, high English proficiency and access to global markets are huge advantages. However, the tax system—especially VAT for digital products—can be tricky to navigate. The good news? With the right guidance, it’s entirely manageable, and there’s significant room for growth.
How to register a business in the UK as a Sole Trader
A sole trader structure is ideal for independent entrepreneurs. If you’ve earned at least £1,000 from self-employment in a given tax year (April 6–April 5), you must register with HMRC.
Step 1: Register with HM Revenue and Customs (HMRC)
Sign up for Self Assessment on the HMRC website.
Once registered, you’ll receive a Unique Taxpayer Reference (UTR).
Step 2: Choose a Business Name
Use your name or pick a unique one. Avoid anything too similar to existing trademarks or registered business names.
Step 3: Keep Financial Records
Maintain detailed income and expense records to simplify tax filing.
Step 4: National Insurance Contributions
Sole traders must pay Class 2 and Class 4 National Insurance contributions based on their profits.
Step 5: VAT Registration
If your turnover exceeds £85,000, VAT registration is mandatory. Register through HMRC’s VAT portal.
How to Register a Limited Liability Company in the UK
If you’re looking to scale or limit personal liability, setting up a limited liability company (Ltd) is a smart choice.
Step 1: Choose a Company Name
Ensure your name is unique and meets Companies House requirements.
Step 2: Appoint Directors and Shareholders
You need at least one director and one shareholder (this can be the same person).
Step 3: Prepare Documents
Draft the Memorandum of Association and Articles of Association, detailing your company’s rules and structure.
Step 4: Register with Companies House
Submit your incorporation documents online via the Companies House portal.
Registration costs £12 and usually takes 24 hours.
Step 5: Open a Business Bank Account
Set up a business bank account to separate company finances from personal funds.
Step 6: Register for Corporation Tax
Within three months of starting, register with HMRC for Corporation Tax.
Step 7: VAT Registration
If your turnover exceeds £85,000, register for VAT through HMRC’s VAT portal.
VAT Considerations for Coaches, Consultants, and Digital Course Creators
As a coach, consultant, or course creator, VAT rules can feel overwhelming, especially when selling digital products. Here’s what you need to know:
Digital Products and VAT: If you sell e-books, online courses, or webinars, these are classified as digital services and may require VAT registration.
Threshold for VAT: If your taxable turnover exceeds £85,000, VAT registration is mandatory.
Selling to the EU: For digital products sold to EU consumers, you may need to comply with EU VAT rules and use the VAT One Stop Shop (IOSS) scheme to simplify reporting.
Small Business Exemption: If your revenue is below the threshold, VAT registration is optional, but you might want to register voluntarily to claim VAT on business expenses.
FREE RESOURCES TO HELP YOU SUCCEED
Step 1: Start with the Free Business Checklist
Get your step-by-step guide to building a strong foundation for your coaching or consulting business.
Step 2: Watch the Free Training
Learn the five blind spots that can sabotage your success -- How to fix them, legally protect your business and gain peace of mind.
About the Author
Hi! I’m Vena Verga-Danemar, an Onlinepreneur Legal Strategist. As both a lawyer and an online business owner, I’ve helped dozens of coaches, consultants, and course creators legally start and grow their businesses using strategies that don’t require working 24/7.
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